How to File Your 2016 Mississippi Tax Return

It might seem like a big job if you haven't filed your Mississippi tax return in a few years or don't know much about state and local tax systems. If you own a small business or are an individual taxpayer, learning how to file your taxes correctly is essential so you don't get in trouble and only pay what you owe. This guide walks you through the process of getting ready to file your taxes so you can do it confidently.

The Mississippi Department of Revenue is the primary agency responsible for collecting tax revenues that support state and local governments. These taxes include income tax, ad valorem assessments, and other taxes that help fund public programs. Filing your taxes correctly helps ensure that your obligations are always the same and that you can get the refund or credits you may be owed.

This article has all the information you need to file your 2016 Mississippi return, including how to get the proper forms and send your tax return online or by mail. You can also get help with payments, deductions, tracking refunds, and using state resources like TAP (Taxpayer Access Point) to keep track of your tax account. This guide will help you get the most money back possible, whether you use tax software, hire a tax preparer, or do it yourself.

Who Needs to File a Mississippi Tax Return for 2016?

Many people, including residents and part-year residents, need to file a Mississippi income tax return for 2016. Whether you earned income within the state, worked temporarily elsewhere, or moved during the tax year, it's essential to determine if you meet the state’s filing thresholds. The Department of Revenue runs Mississippi's income tax system to collect money for state and local governments and programs.

Filing is required if any of the following apply:

You were a Mississippi resident, and your gross income exceeded:
- $8,300 if single, plus $1,500 for each dependent.
- $16,600 if married filing jointly, plus $1,500 for each dependent.
You had Mississippi income tax withheld from your wages, even if your income was below the filing threshold.
You were a part-year resident or non-resident with income sourced from Mississippi (excluding gambling income).
You were a Mississippi resident working outside the state and earned income that must be reported.
You were a Mississippi resident employed abroad temporarily and earned income while maintaining your Mississippi residency.

Important Considerations:

Foreign-earned income excluded on your federal return must still be reported to Mississippi. Use Schedule N to deduct it and include Form 2555 as support.
Married individuals filing jointly must include all household income and determine whether they qualify for specific deductions.
If you're unsure if you meet the income or residency requirements, get help from an expert or check the Mississippi Department of Revenue website for more information.

Failing to file when required can result in penalties and interest. It’s essential to file even if you believe you are owed a refund, as unclaimed tax returns and unpaid taxes administered by the state may be subject to enforcement actions later. Filing on time also allows you to access your tax account for updates and to monitor your refund status.

Key Changes to Mississippi Tax Law in 2016

In 2016, Mississippi introduced several tax law changes affecting how individuals and businesses prepare their tax returns. These updates impacted interest rates, credits, deductions, and business taxes. Understanding them is essential for ensuring compliance, maximizing deductions, and avoiding mistakes. The changes also reflect the state’s broader goals of collecting tax revenues more efficiently while supporting state and local governments.

Key Updates Include:

Lower Interest on Late Payments: House Bill 799 reduced the monthly interest rate on unpaid taxes from 1% to 0.8%. This change applies to late payments and penalties on income tax and other taxes administered by the state.
New Credit for Hiring Veterans: House Bill 33 created a tax credit for businesses that hire honorably discharged veterans who were unemployed for at least six months. Employers could claim 10% of wages or up to $2,000 per qualifying employee. This supported local governments and helped returning veterans find work.
Catastrophe Savings Accounts: House Bill 1134 allowed taxpayers to create Catastrophe Savings Accounts to cover hurricane, flood, or windstorm losses. Qualified contributions and withdrawals were excluded from taxable income, reducing tax liability for affected property owners.
Self-Employment Tax Deduction (Phased In): The Taxpayer Pay Raise Act (SB 2858) introduced a phased deduction for self-employed individuals. Starting in 2017, taxpayers could deduct 17% of their federal self-employment taxes, rising to 50% by 2019.
Corporate Franchise Tax Phase-Out: SB 2858 also gradually eliminated the corporate franchise tax. It introduced a $100,000 capital exemption in 2018, with full repeal planned by 2028. This change benefits companies operating in Mississippi and simplifies tax enforcement.

These changes highlight the Mississippi Department of Revenue’s role as the primary agency responsible for administering tax laws, supporting local governments, and ensuring consistent appraisal practices. Staying informed helps taxpayers file accurately and claim available credits.

Mississippi Tax Rates and Exemptions for 2016

Understanding the applicable tax rates, standard deductions, and exemptions is essential when completing your 2016 Mississippi tax return. These factors determine your taxable income and the amount you may owe or expect as a refund. The Mississippi Department of Revenue uses a tiered rate system and offers specific deductions based on filing status, dependents, age, and disability status.

Mississippi Income Tax Rates for 2016

Mississippi applied a graduated tax structure in 2016:

The first $5,000 of taxable income was taxed at 3%.
The next $5,000 (from $5,001 to $10,000) was taxed at 4%.
All remaining taxable income over $10,000 was taxed at 5%.

This rate structure applies to both individual and joint filers. The state continues to use this progressive approach to collecting tax revenues, which are used to support state and local governments and various public programs.

Standard Deduction Amounts

Standard deductions are available based on your filing status:

Single filers could claim a standard deduction of $2,300.
Married individuals filing separately were also allowed $2,300.
Head of family filers could claim $3,400.
Married couples filing jointly were eligible for a $4,600 deduction.
Surviving spouses received the same deduction as joint filers.

These deductions reduce your Mississippi adjusted gross income and lower your tax liability.

Personal and Dependent Exemptions

In addition to standard deductions, Mississippi allowed personal and dependent exemptions for 2016:

Single taxpayers could claim a personal exemption of $6,000.
Head of family filers were allowed $8,000.
Married couples filing jointly or those with a spouse who passed away in 2016 could claim $12,000.
Married individuals filing separately were eligible for $6,000.

Additional exemptions were available for:

Each dependent: $1,500
Taxpayers or spouses age 65 or older: $1,500
Taxpayers or spouses who are blind: $1,500

These exemptions are part of the process used by the Department of Revenue to ensure consistent appraisal of individual tax obligations and to provide fairness across different household types.

When preparing your income tax return, apply all eligible deductions and exemptions. These amounts can significantly impact the taxes you owe, increase your refund, and help you avoid overpaying your taxes. If you are unsure how to estimate your liability or apply these figures, consider using tax software, a tax preparer, or expert help to ensure accuracy.

What Tax Forms Do You Need to File?

Filing your 2016 Mississippi tax return requires the correct forms based on your residency status and income sources. The Department of Revenue provides a range of forms for individuals, non-residents, and business owners. Using the wrong form can delay your refund or result in processing issues.

Commonly Required Individual Forms:

Form 80-105 – Resident Individual Income Tax Return: Used by full-year Mississippi residents to report all income, deductions, and credits.
Form 80-205 – Non-Resident and Part-Year Resident Return: Required for individuals who moved in or out of Mississippi during the year or earned income in the state while residing elsewhere.
Form 80-106 – Income Tax Payment Voucher: Used to submit payments with a return, including estimated tax or extension payments.
Form 80-107 – Income/Withholding Tax Schedule: Required to report state income tax withheld from wages or other payments.
Form 80-108 – Itemized Deductions and Adjustments: Used when claiming deductions instead of the standard deduction or reporting income adjustments.

Additional Schedules and Forms:

Schedule N (Form 80-108) – Used to report other income, business losses, or deductions not reported elsewhere.
Schedule C or F – Required if you report business or farm income as a sole proprietor.
Form 80-401 – Used to claim credits such as the Veterans Credit or other business-related credits.
Form 80-160 – To claim a credit for taxes paid to another state.
Form 80-115 – Required for e-filing; used to declare that you authorized electronic filing through approved software or a tax preparer.

The Mississippi Department of Revenue website provides access to all official forms and instructions. Please use the original state-issued forms, as copies or altered documents may be rejected. Filing accurate tax returns begins with choosing the proper paperwork for your situation.

Step-by-Step Instructions to Complete Your Mississippi Return

Completing your Mississippi income tax return for 2016 requires a methodical approach. Following each step ensures accuracy, helps reduce errors, and may increase your chance of receiving the maximum refund.

1. Gather Required Documents

Before you start, gather:

W-2 and 1099 forms that show income and taxes taken out
Proof of deductions, like mortgage interest and donations to charity
A copy of your 2016 federal tax return
Any past Mississippi returns for reference
Proof of tax credits or money made from working for yourself

2. Fill Out Form 80-105 (or 80-205 for non-residents)

Include your name, Social Security number, and filing status, among other things.
Include your money, like wages, interest, dividends, business income, and capital gains.
Make changes to your IRA contributions or the interest on your student loans as needed.

3. Calculate Adjusted Gross Income and Deductions

Subtract any deductions you can claim (standard or itemized) from your gross income.
Use exemptions for yourself and your dependents.
This number will help you figure out how much tax you owe.

4. Apply Tax Rates and Credits

Find out how much tax you owe by looking at the 2016 rates.
Get the tax credits you are eligible for, such as taxes paid to another state or business credits.
List any deductions you can get, like catastrophe savings accounts.

5. Determine Your Refund or Balance Due

Subtract total payments (withholding and estimated tax) from the tax owed.
If the result is negative, you will receive a refund. If positive, you must pay the difference.

6. Sign and Attach Required Forms

Sign the return; both spouses must sign if filing jointly.
Attach all required documentation: W-2s, a federal return copy, and any schedules or credits claimed.

Accuracy is critical. Calculation errors, missing signatures, or incorrect Social Security numbers can delay your refund or result in notices from the Department of Revenue. For added confidence, consider using expert help or tax software to complete the return correctly.

Small Business and Self-Employed Tax Filing Tips

If you operated a business or were self-employed in 2016, additional rules apply when preparing your Mississippi tax return. The Department of Revenue requires small businesses to report income accurately and claim deductions or credits appropriately.

Reporting Business or Self-Employment Income

Use Schedule C (for sole proprietorships) or Schedule F (for farms) to report business income and expenses.
Attach the federal schedule to your Mississippi return. If there are differences between federal and state figures, reconcile them using Schedule N.
Business income should be reported on Form 80-105, Line 38 (or Line 41 for farm income).

Entity Structure and Tax Responsibilities

Single-member LLCs report income using Schedule C or F, just like sole proprietors.
Partnerships and S Corporations must file Form 84-105 (Pass-Through Entity Return).
Each partner or shareholder reports their share of income on their return.

Business Tax Credits Available in 2016

Veterans Employee Credit: This credit is for hiring veterans who have been unemployed for six months or longer. It is less than $2,000 or 10% of wages per employee.
Jobs Tax Credit: Offered to companies that create jobs in Mississippi. Limited to 50% of income tax liability.
Ad Valorem Inventory Tax Credit: Available for property taxes paid on inventory and capped at $15,000 per location.

All credits must be claimed using Form 80-401 and supported with proper documentation. These credits help offset your tax liability and support companies operating within Mississippi.

Planning Ahead: Self-Employment Tax Deduction

Although it did not apply to 2016 filings, the Taxpayer Pay Raise Act introduced a phased-in deduction for self-employment taxes beginning in 2017. If you filed for several years after 2016, be aware of how this deduction affects future filings.

Filing as a small business owner requires careful documentation and an understanding of the specific forms and credits available. Tax experts or software tailored for business returns can offer essential guidance to help you file correctly and avoid enforcement issues down the road.

How to File Your Mississippi Return

Mississippi offers multiple options for filing your 2016 state income tax return. Whether you file electronically or by paper, the Department of Revenue provides the tools and guidance to complete the process accurately.

Electronic Filing (Online Filing)

You can file your return through the Federal/State Electronic Filing Program using approved tax software or a registered tax preparer.
Electronic filing reduces errors, speeds up refund processing, and provides instant confirmation of receipt.
You can also access Mississippi’s Taxpayer Access Point (TAP) to view your tax account, make payments, or submit returns. No registration is required for simple actions like making a payment.

Electronic filing is ideal for individuals who streamline the tax filing process and monitor their refund status online. It is beneficial if you’re trying to file for several years and want to ensure a consistent appraisal of your past filings.

Paper Filing (By Mail)

If you prefer to file by paper, you can print the appropriate 2016 forms directly from the Mississippi Department of Revenue website.
Use black ink only when completing forms. Do not place staples in barcode areas.
Attached are all required W-2s, copies of the federal return, and additional schedules.
Sign your return. For joint returns, both spouses must sign.

Mail your completed return to the address that matches your filing situation:

Requesting a refund: P.O. Box 23058, Jackson, MS 39225-3058
Paying or no tax due: P.O. Box 23050, Jackson, MS 39225-3050

Using the correct method and address ensures your return is processed without delay. If you need help, expert help, or tax filing software can walk you through the process.

How to Pay Your Mississippi Income Tax

If you owe taxes for 2016, Mississippi offers multiple ways to make your payment. The Department of Revenue collects tax revenues efficiently and provides options for online and in-person payments.

Payment Methods

Online via TAP: Visit the Department of Revenue website, click on TAP, and follow instructions to pay directly. You can pay without creating a complete tax account.
Check or money order: Mail your payment with Form 80-106 to P.O. Box 23192, Jackson, MS 39225-3192. Make checks payable to the Mississippi Department of Revenue and include your identifying number.
Credit card or electronic check: Use www.ms.gov/dor/quickpay to submit payment. A convenience fee will apply.
MoneyGram: Visit any participating location and use tax code 15122. You’ll need your 8-digit Mississippi DOR account number.
In person: Pay at a Department of Revenue District Office.

Installment Agreements

If you cannot pay the full amount owed:

Submit Form 71-661 to request an installment agreement.
You must be current on all required income tax returns.
Minimum payment is $25 per month, and interest continues to accrue.

Penalties and Interest

Late payment interest: 8/10 of 1% per month.
Late payment penalty: 0.5% per month, up to 25%.
Late filing penalty: 5% per month, up to 25%, with a $100 minimum.

Paying your taxes on time helps avoid enforcement measures and keeps your tax account in good standing with the state.

How to Track Your Refund

If you expect a refund after filing your 2016 Mississippi tax return, you can track its progress online or by phone. Knowing when to expect your refund helps with financial planning and prevents confusion over processing delays.

Online Refund Tracking

Go to the TAP website at https://tap.dor.ms.gov/.
Click on “Where’s My Refund.”
Provide the following information:
- Your Social Security Number (or ITIN)
- The tax year (2016)
- Your Mississippi Adjusted Gross Income from your return.

This tool allows you to access your refund status and ensure your tax return has been received and is under review.

Phone Tracking

Call the automated refund line at (601) 923-7801.
Be prepared with your identifying information, including SSN and income figures.

Refund Timelines

Electronically filed with direct deposit: Typically 7–10 business days.s
Paper return with check: Up to 8–10 weeks
Returns with errors or manual review: Additional delays possible

Refund Offsets

Your refund may be reduced if you owe past-due child support, unpaid state taxes, or debts to agencies or educational institutions. No refunds are issued for amounts under $1.00.

No refund will be issued for amounts under $1.00. Monitoring your tax account through TAP ensures you stay updated on refund changes or deductions.

Final Filing Checklist

Before submitting your 2016 Mississippi tax return, use this checklist to ensure everything is complete and accurate. A final review helps prevent delays, penalties, or issues with your refund.

Review Before You File:

Confirm all Social Security Numbers are correct to avoid processing delays or rejection.
Double-check your calculations for income, tax owed, and refund amounts.
Make sure your return is signed. For joint returns, both spouses must sign.
Attached are all W-2s and 1099s showing Mississippi income tax withholding.
Include Form 80-107 to report income and withholding, even if you only had one job.
If itemizing deductions, attach Form 80-108 with proper documentation.
Attach Schedule C or F if you earned self-employment or farm income.
Include Form 80-160 if you paid income tax to another state to avoid double taxation.
Attach Form 80-401 if you claim credits like the Veterans or Inventory Tax Credit.
Include a full copy of your 2016 federal return for income verification.
If paying by check or money order, complete Form 80-106 and make it payable to the Mississippi Department of Revenue.
Use the correct mailing address based on requesting a refund or submitting a payment.
Keep a complete copy of your return and all attachments for your records.
If e-filing, save all supporting documents in case the Department of Revenue requests them later.

Frequently Asked Questions (FAQs)

Who is responsible for collecting tax revenues in Mississippi?

The Mississippi Department of Revenue is the primary agency responsible for collecting tax revenues across the state. It oversees income tax returns, business taxes, and ad valorem assessments. This department works closely with counties and municipalities to support state programs and ensure consistent property appraisal. Its role includes tax enforcement and assisting taxpayers with filing and paying their taxes.

What is an ad valorem assessment, and how does it affect me?

An ad valorem assessment is a property valuation for tax purposes, including real estate and motor vehicles. Local governments and counties use these valuations to determine property taxes, which fund local services. The Department of Revenue monitors ad valorem assessments to ensure consistent appraisal practices statewide. While not part of your income tax return, these assessments are one of the various taxes that support state and local governments.

Can I still use online filing for a 2016 Mississippi tax return?

Some tax software may allow online filing for prior-year Mississippi tax returns, including 2016. However, availability depends on the provider. The Department of Revenue's website offers downloadable forms if e-filing is unavailable. Filing online helps speed up the process, gives access to your tax account, and may improve your chances of getting a refund quickly. You can also consult a tax preparer for expert help if needed.

Are free tax filing options available for Mississippi returns?

Depending on your income and filing status, free filing options may be available through select tax software providers or community programs. The Department of Revenue website offers access to forms and step-by-step guidance to prepare your taxes. If your return is simple, free tools may help you file without cost. For more complex returns, tax experts can help ensure accuracy and potentially reduce the overall cost of tax filing.

What types of taxes are administered in Mississippi besides income tax?

Mississippi administers various taxes beyond income tax, including sales tax, ad valorem taxes, excise taxes on alcoholic beverages, and registration fees for motor vehicles. Wholesale distributors and companies operating in regulated industries are also subject to special tax rules. These taxes are vital for collecting tax revenues to support state programs and local option law initiatives across municipalities and counties.

How can I get the maximum refund when filing my Mississippi return?

To get the maximum refund possible, claim all eligible deductions and tax credits. Carefully prepare your return using accurate forms and estimate your taxes owed or overpaid. Filing early, double-checking your math, and using a tax preparer or software can increase your chances of receiving a full refund. The Department of Revenue provides guidance to help you file completely and correctly.

Why must I include a federal return with my Mississippi tax filing?

Mississippi requires a copy of your federal income tax return to verify income, deductions, and credits. This helps the Department of Revenue ensure accurate reporting and supports the enforcement of taxes administered by the state. Including your federal return allows for a consistent appraisal of your financial information and reduces delays in processing your state tax return. It also ensures that your tax account reflects the complete filing history.

How to File Your Mississippi Tax Return for 2016: Step-by-Step Guide for Individuals and Small Businesses